Service Begins with the Application

C4-L1-P8

Service Begins with the Application

A producer's primary responsibility in the application process is to the insurer. However, he or she also has an ethical duty to educate the prospective insured about the application process.

  • Why the information is required.

  • How it will be evaluated.

  • The need for accuracy and honesty in answering all questions.

  • The meaning of such terms as “waiver of premium,” “automatic premium loan,” “nonforfeiture options,” “policy loans,” and “conditional receipt.”